Throughout my life, I’ve been fortunate to encounter many ‘rich dads’ who have given me advice on wealth generation and preservation. I’ve also spent numerous hours over the years pouring through financial articles. The points in this article are derived from a combination of advice as well as personal experiences throughout the years.
They read verociously
My own dad once said, “The books you read, and friends you make, will determine your life 10 years from now”. I noticed that reading is a common hobby amongst the wealthy. One may not necessarily agree with the views of the author; one may not even agree with this article, but reading definitely broadens one’s perspective.
Reading enables knowledge acquisition, which enables conversation and sharing, providing opportunities to network with different types of people. Reading also provides the necessary motivation, and ideas that would never otherwise have come to fruition.
They inspire and encourage each other
All my inspirations to do stuff have come from friends who have encouraged me to be the best of myself. Have you ever met a toxic group of friends/people whose goal in life seem to be one upping you or pulling you down into pits of negativity? Such a downer isn’t it?
The groups you want to be with are the ones who are happy for you to succeed. Similarly, you should be happy when they succeed. This is also the reason why I hold an annual house party every year (since 2011). I typically invite people who are humble, positive, and potential captains of their industry. If you’re positive and love to be surrounded by positive people and have a good time, send me a text and I’ll keep you updated on my next annual house party!
They value experiences rather than things
You hardly see a messy rich house. In contrast, poor houses are usually full of things. If things brought satisfaction, they’ll be the happiest people in the world. That being said, there are also rich people who have tons of branded things but ‘empty houses’.
The truly rich (in wealth and happiness) are those who know that they cannot bring their personal belongings with them after this life. They cherish experiences, travel, treat their friends well, enjoy good food, all whilst obeying this rule: they stay out of debt.
They stay out of debt
Credit cards are a boon to the rich and a bane to the poor. The rich utilise credit cards to live the lifestyle they desire (click here on my past experience on First Class Suites), whilst the poor spend their lives paying down credit card debt due to financial mismanagement.
The rich adhere to this proverb, “The rich ruleth over the poor, and the borrower is servant to the lender” (Proverbs 22:7, KJV).
They save on big ticket items
Rich people save and do price comparisons whenever they can but they don’t sweat on the small stuff. They rather focus their time and energies on big ticket items, making sure they get the best deals on the wedding, house, car, renovations etc.
If something requires them to spend a significant amount of time just to save a few cents or dollars (depending on the situation), they’ll rather opt for the slightly more expensive but convenient option.
They anticipate needs
To be fair, this is a sort of a ‘chicken and egg issue’. It can be debated that people who are financially secure can afford to spend on anticipated future needs. Assuming you’re not dirt poor and living literally from pay cheque to pay cheque, you should be anticipating needs. For example, it could be simple things like buying necessities in bulk when on discount, to ensuring your car is well serviced to avoid breakdowns (which costs significantly more time and money).
There are whole industries that thrive on people needing things at the last moment. Have you ever wondered who buys hugely marked up necessities such as tampons or toiletries at 7 Eleven? Now you know!
They buy quality things that last
A few years ago, I shopped online for cheap T shirts and shoes. The T shirts became furry; some stretched to become ‘dresses’. The faux leather shoes wore out quickly and didn’t allow my feet to breathe, which meant stinky feet.
These days, I buy items primarily for their quality. Not all branded stuff comes with quality, but they generally have better quality. There is a saying in Chinese, “一分钱一分货.” Simply translated, it means that what you spend is what you get.
Rich people buy a few good items that last rather than many items that don’t. The additional benefit to buying good quality items is that they provide more satisfaction as well.
This list is by no means exhaustive and I hope that this sharing might benefit some. I’ll be writing more financial related articles in the weeks and months to come, so click the follow button if you want to stay updated to the latest articles on SG GOOD LIFE!